The term Metaverse has been spilling a lot of ink over the past few months, but what exactly is it? For anyone who reads science fiction books like Ready Player One or watches movies like The Matrix, it’s basically an online virtual environment. Users can live, work and play there. The possibilities can be endless. More and more companies are starting to invest in this field. Here are the top Metaverse stocks to watch.
Meta Platforms Inc. (NASDAQ: FB)
First, let’s talk about the first Metaverse action. Facebook changed its name to Meta Platforms in October 2021 to show how serious these companies are about virtual reality In 2014, the company bought Oculus and today its virtual reality headset outperforms all other competitors Last year, the company spent $10 billion developing the metaverse. Recent patents on user biometric data ensure that avatars are as realistic as possible.
In August 2021, Meta Platforms took working from home to another level. With Oculus, they built the Horizon Workrooms app Users can participate in business meetings through the application. Everything in the classic office is available, from the keyboard to the whiteboard Meta currently derives most of its revenue from ads served on its social media platforms (Facebook, Whatsapp, Instagram) The probability of these same personalized ads appearing in a VR system is very high. On February 3, Meta stock fell 25% to $240 due to the loss of its first ever monthly active user, as well as disappointing results and expectations for the coming year. Will the community recover from its investment in Metaverse? Time will tell, but if more and more people are looking for virtual reality, it could be a good investment opportunity right now.
Microsoft Corporation (NASDAQ: MSFT)
Microsoft has also been very busy with its investments in metaverse stocks. Earlier this year, the company bought video game giant Activision Blizzard Inc. for $69 billion. Activision is the creator of Call of Duty, World of Warcraft, Guitar Hero, Overwatch, and many other internationally successful video games. The plan is clear. Integrating video games into virtual reality.
There are only months left to integrate with Xbox to deliver the best video games possible. In addition, the Microsoft 365 suite of software also provides virtual work environments through Microsoft Dynamics 365 – Connected Spaces, just as Meta does. Microsoft users will not have to switch to a competitor when the app can be integrated into existing software. The app can also be used on a Meta Oculus VR headset. Microsoft’s target audience is not social media users, but companies and gamers.
Instead of investing in completely new technology, the company upgrades its own technology and buys up existing market share. This is why its stock price hasn’t suffered a huge drop like the one in Meta. It is currently at $307, which is not far from the all-time high of $349.67 reached at the end of December 2021.
Roblox Corp (NYSE: RBLX)
Roblox Corp (NYSE: RBLX) Roblox is the closest thing to an online metaverse platform. That’s why it’s on our Metaverse inventory. The platform collaborates with third-party developers to create games for its users. It recently acquired the Guilded platform, which connects different gaming communities Half of the users are under 13, but adults also participate in the trials. It currently has nearly 50 million daily active users.
This number is constantly increasing. Artists like Tai Verdes and Lil Nas X have also held virtual concerts during the pandemic This can be an opportunity for fans all over the world to see a virtual show of their favorite artists. Some viewers live in areas that artists never visit. Now they can share by default. Roblox has also partnered with Forever 21, Nike, and Ralph Lauren to promote their brands on the platform as well as create and sell their merchandise. Roblox generates revenue by selling its virtual currency to users of the platform. They can use this currency to participate in various online activities. If Roblox can retain its existing young customers and attract older generations, its growth could be exponential. Their earnings are rising quarterly, but their shares have taken a hit since their all-time highs in November 2021. It currently stands at $63.73, down more than 50% from its all-time high of $141.
Unity Software Inc (NYSE: U)
Unity Software’s business model allows it to leverage the metaverse in a different way. They are pioneers in the field of 2D and 3D software. In fact, they are responsible for 71% of the top 1000 mobile games and more than 50% of games on all platforms use their code. When creating metaverse content, unity is likely to play an important role in the visual aspect The Unity platform allows ordinary people to create a 2D and 3D world for free. If users like the platform, they can upgrade to the paid version. Users can then create video games and apps to eventually monetize their efforts. The unit receives a portion of the revenue through the SaaS (Subscription as a Service) model. Thanks to recent acquisitions, anyone can create movie-quality characters on their platform. The unit is not profitable yet. But this reverse stock listing procedure is going in the right direction. His income increases and his losses decrease. Profitability should be around the corner for them. Their share price is currently $108.66, halfway to an all-time high of $210 in November 2021.
The Electronic chip manufacturers such as Nvidia Corp (NASDAQ: NVDA) And Qualcomm Corporation .(Nasdaq: QCOM) It plays a unique role in the continuous development of technology. Complex calculations on computers require the best chips. Both companies are in a very good position, given their current situation, to supply the aforementioned companies with much-needed chips.
There is currently a worldwide shortage of chips, which makes the following years even more important Strategic partnerships with emerging leaders across the Metaverse will be key. Qualcomm has signed a collaboration agreement with Microsoft. This ensures that high-quality chips are available and the financing needed to meet demand.
Finally, we will talk about one training institution. For those who do not want to invest in one company and want a broader exposure, Roundhill Ball Metaverse ETF (NYSEMKT: META) here for you.
An ETF has an expense ratio of 0.75% and has more than $800 million in assets under management. This is the first index that tracks companies in the metaverse market. Some of the companies mentioned in this article are part of this ETF. Here is a breakdown of the top ten. Nvidia Corporation 8.47.00 Microsoft Corp 7.46.1 Meta Platform Inc 7.08% Roblox Corp 5.41.1 Unity Software 4.56% Apple 4.51% Taiwan Semiconductor 4.49.1 Qualcomm Inc 4.10.1 Autodesk Inc 3.95.1 Update Amazon com 3.73% This ETF provides investors with a good opportunity to get a stake in major technology companies. 20% of these ETFs are invested outside the United States. It has not performed well since its inception. This is still a fairly new industry and there is still plenty of room for growth in the coming years and decades.
Many metaverse stock companies will take the opportunity to sell NFTs on their platforms. The same technology that powers Bitcoin and other cryptocurrencies will be used in the metaverse. More and more people want to own a unique virtual property online. NFTs can range from tokens to actual land. Decentraland is a good example. It is the most popular place to buy land and other items with the MANA cryptocurrency. The adidas fashion show was recently held in Decentraland to promote its fashion designs in the form of NFTs. The possibilities are endless with NFTs in the virtual world.
Conclusion on Stocks of Metaverse
In conclusion, the actions of metaverses are very diverse. Investors can choose between companies that innovate in the real metaverse, in graphics, or in the hardware behind the technology. This market is very small and has a lot of potential. Companies that can uniquely monetize their brand will be the most successful If you want to learn more about how to profit from the stock market, head over to our free library of tutorials. There is something for everyone, including options trading for smaller accounts.
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